Iconix Ups Outlook on Strong Q1 Profit, Sales

bongoNew York–Iconix Brand Group, marketer of brand and licenses, reported day first quarter earnings that beat estimates, resulting in the company raising its forecast.

For the quarter ended March 31, the parent to Candie’s, Bongo, Material Girl, Joe Boxer, Danskin, London Fog etc. posted earnings of 72 cents a share ahead of analysts’ estimate for 63 cents a share. Included in the results was a non-cash gain of about $38 million

before taxes related to the re-measurement of the company’s initial investment in Iconix Latin America in conjunction with its acquisition of the remaining 50% from its joint venture partner.

Net sales grew 10.5% to $116.1 million ahead of analysts’ forecast for $109.22 million in sales.

“With record results in the first quarter, 2014 is off to a strong start,” said Neil Cole, chairman/ceo. “Through our diversified portfolio of brands and expanding global footprint we continued to achieve strong growth. As we look ahead, we believe we can continue to deliver significant value to our company and shareholders through a combination of organic growth driven by international expansion and Peanuts initiatives, as well as, additional acquisitions of global iconic brands.”

Iconix raised its full year earnings forecast to $2.50 to $2.60 a share, up from the previous forecast for $2.19 to $2.29. Annual sales should be in the range of $450 million to $460 million, up from an earlier projection for $440 million to $455 million.

Analysts’ estimate for full year earnings is for  $2.58 a share on sales of $450.73 million.

 

 

 

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Jeff Prine, Editor at Large, Accessories Magazine
Jeff returns as a regular contributor to Accessories magazine. Initially Jeff worked as senior editor at Accessories more than 20 years ago and his love of the industry has followed him until present. Since his tenure here, Jeff has continued to report jewelry, watch and other luxury goods trends as executive editor at Modern Jeweler magazine, fashion director at Lustre, and as contributor on products and trends for consumer and trade publications and websites. In addition to his editorial experience, Jeff also served as an adjunct instructor for accessories merchandising at Fashion Institute of Technology. jeffp@busjour.com